Reclassification of Investments in Securities

Reclassification of Investments in Debt and Equity Securities
Problem 1: On November 19, 2007, South Hampton Construction purchased Arizona Public Service bonds. On February 7, 2008, South Hampton reevaluated its investment strategies and decided to reclassify this investments. Arizona Public Service bond price and classification information for South Hampton's investments for 2007 and 2008 is as follows:
Bond Prices	Nov. 19, 2007	Dec. 31, 2007	Feb. 7, 2008
	$32,500	$34,000	$36,250
Original classification	Available-for-Sale Securities
Revised classification	Held-to-Maturity Securities
Required:
Write the journal entry to reclassify the Arizona Public Service bonds from Available-for-Sale Securities to Held-to-Maturity Securities on Feb. 7, 2008.

Reclassification of Investments in Debt and Equity Securities